Jul 3, 2019

Share Australian venture capital firm Carthona Capital is writing cheques to a handful of the firm's investors, thanks to a chunky exit at the hands of $US15.3 billion automotive parts giant Genuine Parts Company. It is understood Carthona had about a 35 per cent stake in online car parts retailer Sparesbox, which has just been snapped up by Genuine Parts Company's local arm GPC Asia Pacific. The deal is understood to value Sparesbox in the "tens of millions of dollars" and came only a year or two after GPC first popped up on the Australian start up's register as a strategic investor. GPC is best known locally as the owner of the country's second biggest car parts retailer Repco. Repco owner GPC Asia Pacific has snapped up an Australian online car parts retailer. Michael Clayton-Jones Sydney-based Carthona Capital was Sparesbox's biggest investor with about a 35 per cent stake, according to documents filed with the corporate regulator. Other investors included Sparesbox founders Leon Saliba and Andrew Palmer, Moelis Australia Private Investment Fund and GPC. The deal completed this week and it is understood Carthona has started distributing funds to its investors, which include superannuation heavyweight and the country's biggest venture capital investor Hostplus. Carthona Capital did not return a call on Wednesday. Advertisement Such an exit - said to have returned a "mid 30s IRR" according to one investor - is good news story for Australia's venture capital industry. It's no secret fund managers have been good at deploying capital, but have struggled to find exits. It means their investors are largely sitting on unrealised profits, rather than banked returns. As for GPC, it is expected to use Sparesbox to help grow its online sales in Australia and regionally, via Repco and its other brands. GPC had a few things to say about its digital sales strategy on a recent investor call. Sparesbox got a mention, as the disruptor that houses "68 team members who live, breathe, eat, sleep digital innovation", investors were told. Sparesbox was founded in 2014. Get a first look at tomorrow's headlines Sign up to the Street Talk First Look newsletter